The CARES Act and Charitable Giving
As you may have heard, the U.S. Congress has passed the CARES Act. This act has many facets and also makes certain modifications to help facilitate philanthropic contributions to worthwhile organizations such as King School. Some specific provisions of the CARES Act related to charitable giving are referenced below. As always, please consider discussing with your professional tax advisors.
$300 Charitable Deduction for All
Even if you do not itemize deductions on your taxes, your gift can reduce your 2020 taxable income by up to $300 ($600 for couples). This is a special benefit for 2020.
100% Deduction Allowance for Cash Gifts to Charities
For the 2020 tax year only, individuals may deduct cash gifts up to 100% of their adjusted gross income (AGI) compared to the typical 60% allowance.
IRA Distributions for Donors Age 70½ or Older
Though the required minimum distribution (RMD) is temporarily suspended for 2020, gifts from an IRA rollover or qualified charitable distribution (QCD) will continue to reduce your taxable income (up to $100,000), especially if you do not itemize your deductions.